Business Loan Calculator
Calculate your monthly business loan payment, total interest, and true cost with origination fees factored into an effective APR.
Fee: $500 · Net proceeds: $49,500
Monthly Payment
$1,025.83
60 payments · $61,549.59 total
How This Calculator Works
This calculator uses the standard amortizing loan formula to compute your fixed monthly payment based on loan amount, annual interest rate, and term. Each payment covers both interest (charged on the remaining balance) and principal (reducing what you owe), with early payments weighted heavier toward interest and later payments shifting toward principal.
The effective APR accounts for the origination fee — a common upfront cost that increases your true borrowing cost. When you pay a 2% origination fee, you receive less than the full loan amount but still make full payments, effectively raising your interest rate. This calculator uses a binary-search algorithm to solve for the exact monthly rate that reconciles your payment schedule with the net proceeds received, then annualizes it to produce the APR.
Use the term preset buttons (12, 24, 36, 60, 84 months) to quickly compare scenarios. The principal vs. interest pie chart shows the total cost split at a glance — the more the red slice dominates, the more expensive the loan is overall. Always compare effective APR across lenders to find the true lowest-cost financing option.